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Questcor Reports 2010 Financial Results
Date:2/23/2011

r, Questcor is able to monitor trends in payer mix and areas of therapeutic use for new Acthar prescriptions based on data it receives from its reimbursement support center.  Questcor estimates that over 90% of new Acthar prescriptions are processed by this support center, but believes that very few refill prescriptions are processed there.

In order to help investors better understand historical trends in sales of Acthar for each of its three key therapeutic uses, acute exacerbations of MS, IS, and NS, Questcor has grouped new prescriptions processed by its reimbursement center into two groups -- "Paid" and "Fully Rebated." "Paid" prescriptions include those prescriptions for which Questcor retains the full selling price for Acthar, as well as Tricare prescriptions that receive a 24% rebate.  "Fully Rebated" prescriptions are those for which Questcor can identify that it has recorded a rebate liability approximately equal to or, for periods prior to the first quarter of 2010, greater than the price charged to its distributor.  From time to time during the past two years, the rebate liability for some government insurance programs has shifted between these two categories.  Therefore, the prescriptions that fall into the "Paid" and "Fully Rebated" categories have also shifted over time as follows:

"Paid" prescriptions (Rxs) include all prescriptions in the following payer categories:

  • Commercial--For all time periods.
  • Tricare--For 2008 and 2010 (but not 2009).
  • Medicaid Managed Care--For all time periods through March 22, 2010 (see Note 1 below the tables).

  • "Fully Rebated" prescriptions (Rxs) include:

  • Those reimbursed by fee-for-service Medicaid insurance and other state programs eligible for full rebates as Medicaid Waivers Programs for all time periods.
  • Tricare--For 2009.
  • Medicaid Managed Care--For all time periods beginning March 23, 2010 (see Note 1 below the tables
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  • SOURCE Questcor Pharmaceuticals, Inc.
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